On Wednesday, October 24, the Bank of Canada announced its decision not to raise interest rates, maintaining its benchmark rate at 5%. A mere week later, on November 1, the U.S. Federal Reserve followed suit, leaving interest rates unchanged at the 22-year high of 5.25% to 5.5% for its second consecutive meeting. However, both central banks are not entirely ruling out another rate hike before the year’s end as they remain steadfast in their commitment to curb inflation to 2%.
In this special manager conversation, Sightline Wealth Management’s Warren Gerow and Etienne Bordeleau-Labrecque, vice president and portfolio manager of Ninepoint Partners, examine the central banks’ latest actions and comments to provide comprehensive insights into everything investors need to know about the current and potential future state of the economy.
Specifically, Gerow and Bordeleau-Labrecque discuss:
- An in-depth overview of the Fed’s latest rate decision and its initial impacts on investors.
- The outlook for future rate increases and whether rate cuts may be on the horizon moving forward.
- How the Fed may address the fiscal stimulus that is contributing to the growing government deficit.
- Whether the Fed will be able to successfully achieve its goal of a soft landing or if a U.S. recession is still possible.
- How the Treasury market immediately reacted to the continued pause in hikes and if it may become a long-term trend.
- The positive economic indicators that influenced the Fed and why these tailwinds may ultimately turn into headwinds.
If you have any questions regarding the central banks’ latest actions and how they may impact your portfolio, please do not hesitate to contact us. Your trusted team at Sightline Wealth Management will continue to monitor key economic and inflation data to keep you and your portfolios up to speed.
Important Information:
Warren Gerow is an independent investment wealth consultant at Sightline Wealth Management.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.